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Writing Put Options. A low risk option trading strategy

Stock trading is definitely one of the most popular sources to make money, equally for individual investors and for large financial institutions. Recently, shares have made up an increasingly large proportion of a family's financial assets. It is true that the stock trading has an increased profit potential, but as any other business, stock trading also has a significant amount of risk.

Few years back, I wet my feet in the stock market. I did burn my fingers during the recession time, but all these years I have tried several strategies and learned many different techniques. I want to share one strategy which has worked extremely well for me. The approach is Shorting Put Options. Please understand that stock trading has its own risks. Please do not try any approach until you understand the strategy and risks associated with it.

Ok, let’s talk business. Our strategy is Shorting Put Options. Let me explain each of these words a little more.

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